ATI has continued to increase its wafer starts at TSMC and UMC because demand for the company's PCI Express graphics chips is seeing a steady growth, ATI chairman Ho Kwok-yuen said.
Ho also said that the impact of the recent recall of Intel 915/925 chipsets was limited, and that by year-end PCI Express chips will account for 40% of ATI's total VGA chip production.
The company expects an increasing demand from system integrators and the channel, in addition to PC OEMs.
Due to efforts by ATI to promote sales among PC OEMs and in the channel, ATI saw its share of the desktop-use discrete VGA chip market rise to 46% in the second quarter, up from 43% in the first quarter. Ho cited data recently released by Mercury Research.